NORTH CAROLINA COURT OF APPEALS
Filed: 2 January 2007
v. Buncombe County
No. 04 CVS 4265
THE GROVE PARK INN RESORT, INC.,
a Delaware Corporation,
Defendant.
Appeal by Plaintiff from judgment entered 1 August 2005 by
Judge Gary E. Trawick in Buncombe County Superior Court. Heard in
the Court of Appeals 6 June 2006.
Kelly & Rowe, P.A., by James Gary Rowe, for Plaintiff-
Appellant.
Brooks, Pierce, McLendon, Humphrey & Leonard, L.L.P., by
Robert J. King, III, and John S. Buford, for Defendant-
Appellee.
STEPHENS, Judge.
On 1 August 2005, without specifying the basis for its ruling,
the trial court granted summary judgment in favor of Defendant and
dismissed Plaintiff's breach of contract claim following a hearing
on Defendant's motion for summary judgment held 18 July 2005.
Plaintiff timely appealed, alleging that summary judgment was not
proper. For the reasons set forth below, we affirm the trial
court.
After obtaining an order of the superior court extending thetime to file its action, on 27 October 2004, Plaintiff filed a
complaint against Defendant
alleging breach of contract and seeking
damages in excess of $300,000. In its complaint, Plaintiff alleged
that on or about 6 March 2001, the parties entered into a Purchase
Agreement, by which Defendant agreed to sell the Bynum House to
Plaintiff with the provision, among others, that the house be
removed from Defendant's property on or before 31 December 2001.
Plaintiff further alleged that at Defendant's request, Plaintiff
delayed obtaining the required demolition permit to allow Defendant
additional time for property design and development. According to
the complaint, in July 2001,
Defendant advised Plaintiff to proceed
with securing the appropriate permit, and on or about 15 August
2001, Plaintiff submitted to the City of Asheville an application
for a demolition permit for removal of the Bynum House. It is
undisputed that Plaintiff never obtained the required permit to
remove or demolish the subject property.
Plaintiff further alleged that on or about 6 September 2001,
Defendant asked Plaintiff to relinquish its rights under the
Purchase Agreement. Plaintiff refused because the salvage value of
materials Plaintiff planned to remove from the Bynum House was
between $300,000 and $350,000. On 8 October 2001, according to the
complaint, Defendant advised Plaintiff that it must 'remove the
house from its existing site, relocating it on to another site andrebuild it completely thereon.'
Plaintiff alleged that Defendant breached the parties'
contract by refusing to allow Plaintiff to demolish the Bynum House
on its existing property and failed to deliver possession of the
property to Plaintiff as stated in the Purchase Agreement.
Defendant filed an answer, alleging, inter alia, that
Plaintiff's claim was barred by the running of the applicable
statute of limitations. Defendant also counterclaimed for damages
alleging that Plaintiff had breached the parties' Purchase
Agreement by failing to take certain actions by 31 December 2001.
In reply to Defendant's counterclaim, Plaintiff denied it had
breached the parties' contract.
On 27 May 2005, Defendant proceeded with a Rule 30(b)(6)
deposition, at which Jerry Gilley, managing member of Plaintiff,
appeared and testified as Plaintiff's corporate representative.
Pertinent to our resolution of the issues on this appeal, Mr.
Gilley testified as follows:
At the time the agreement was prepared, it was Mr. Gilley's
intention to demolish the house. He had not decided whether to
demolish it for salvage or catalog and rebuild it. Subsequently,
Mr. Gilley decided that it was not economically or geographically
prudent to move the house to a different location. At some point
between 6 March 2001 and 20 May 2001, Mr. Gilley was given accessto the house, but claimed that he did not prepare an application
for a demolition permit because Defendant asked him to put
everything on hold until Defendant was able to turn the house
over to him. At the time, Defendant had personnel, furniture, and
other materials in the house. Mr. Gilley was not given the keys to
the house until 20 May 2001, when he was asked again to wait before
submitting a demolition permit application. It was Mr. Gilley's
understanding that since the Purchase Agreement required all of the
applicable permits to be obtained before 1 July 2001 and Defendant
had asked him to wait, Defendant agreed that the 1 July 2001
deadline did not have to be met. Mr. Gilley acknowledged that no
extension or revocation of the 1 July 2001 deadline was recorded in
the contract nor confirmed in writing, and that no consideration
was given for the alleged change in terms, even though he was
familiar with the clause in the Purchase Agreement which required
any modifications of the contract to be in writing.
Mr. Gilley further testified that he received a letter dated
7 September 2001 from counsel for Defendant which stated that
Plaintiff was not to access the Bynum House until Defendant was
satisfied that Plaintiff would not sell parts of the Bynum House
for salvage. Mr. Gilley considered this request by Defendant to be
a violation of the Purchase Agreement.
Additionally, Mr. Gilley received a letter dated 21 September2001 from Defendant's attorney, which stated that Defendant would
not allow Plaintiff access to the house unless Plaintiff agreed to
rebuild the house in a different location. Mr. Gilley testified
that he also considered Defendant's position as set out in the 21
September letter to be a violation of the parties' agreement. In
a letter dated 26 September 2001, Mr. Gilley informed Defendant
that he disagreed with Defendant's interpretation of the Purchase
Agreement.
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